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5 hurdles for payment banks to overcome

If they are to succeed, they will have to overcome some basic challenges specific to the digital payment business

Over the past year, the Reserve Bank of India has introduced innovation-friendly regulations, including the licensing of Payments Banks. The Payments Bank regulations were particularly noteworthy as they finally provide a framework for a variety of organizations with distribution muscle to provide payment and deposit services at scale in India. Despite these advances, wide-scale digital payment services remain unproven in India. If newly licensed Payments Banks are to succeed, they will have to overcome some basic challenges specific to the digital payment business. These ...